BAE sets out shipbuilding restructure rationale

type26BAE Systems has set out its explanation of the 1,775 job losses that are expected to result from restructuring proposals behind what it calls the “rationalisation of the UK naval ship business to match future capacity requirements”.

The job losses include 940 in Portsmouth in 2014 and 835 across Filton, Glasgow and Rosyth, progressively through to 2016.

BAE says a significant reduction in workload will follow the peak of activity on its aircraft carrier programme, the building of six Type 45 destroyers and two export contracts. 

It went on: “The anticipated Type 26 frigate (pictured) programme will, in future years, address some of that workload reduction.  In the interim period, a proposed contract for the manufacture of three Offshore Patrol Vessels will provide additional capability for the Royal Navy and sustain key shipbuilding skills.”

The company’s statement said that it had agreed with the Ministry of Defence that Glasgow would be the most effective location for the manufacture of the future Type 26 ships and that shipbuilding operations would be consolidated there.

Portsmouth will be “the centre of its Maritime Services and high-end naval equipment and combat systems business”.

Copyright Ken Hurst 2013


About Ken Hurst

Ken Hurst began his career as a journalist in London over 30 years ago, working on a range of publications before moving on to weekly newspaper production in the newly-independent Zambia of the 1970s. He returned to the UK where his work included spells on newspapers and magazines, before moving to head up Norwich Union’s corporate affairs division. In the 1990s he moved on to freelance, co-own and publish the B2B audio magazine Sound and front the BBC radio Yesterday’s Papers programme. There followed six years as Business Editor at Britain’s biggest selling regional daily newspaper, The Eastern Daily Press, where he led an award-winning team and for whom he still writes a weekly socio/political comment column. Subsequently, he was Group Editorial Director at CBM, responsible for its UK and US magazine output – including The Manufacturer magazine – research-driven industry reports and live events content. Currently he is Contributing Editor at Works Management magazine publisher Findlay Media and Chairman of the consumer publishing house TNT Multimedia Ltd. He is a Fellow of the Royal Society of Arts and of the British Association of Communicators in Business.
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